Asian stock markets climbed sharply on Friday, led by South Korea’s Kospi, which surged 2% to reach a record high, amid growing optimism over renewed diplomatic talks between the United States and China. The gains came after the White House confirmed that U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to hold bilateral discussions next week, signaling a potential thaw in U.S.–China relations.

According to U.S. Press Secretary Karoline Leavitt, President Trump will depart for Malaysia late Friday, then travel to Japan and South Korea, where he will meet President Xi next Thursday after delivering remarks at the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Reuters reported.

South Korean Markets Surge to Record Levels

The Kospi Index (KS11) climbed 1.98% to 3,921.87, marking a new all-time high, while the Kosdaq advanced 0.92%. The Finance Ministry of South Korea said it remains prepared to intervene in the foreign exchange market if volatility intensifies, particularly amid fluctuations in the won-dollar exchange rate.

The South Korean won strengthened 0.11% to 1,434.7 per U.S. dollar on Friday, although it remains down more than 4% over the past three months. Notably, the won has appreciated 2.86% against the greenback since the start of the year.

Japan’s Inflation and Market Gains

In Japan, the Nikkei 225 rose 1.57% to 49,406.29, while the Topix Index gained 0.39%. Inflation data released Friday showed that Japan’s core inflation rate accelerated to 2.9% in September, the first increase since May and in line with economists’ expectations.
This marks a rise from 2.7% in August, reflecting continued pressure from energy and goods prices. Headline inflation also climbed to 2.9%, underscoring the Bank of Japan’s ongoing struggle to stabilize price growth while maintaining accommodative monetary policy.

Regional Market Overview

Across the Asia-Pacific region, stock indexes showed broad gains:

The Hang Seng Index rose 0.83%, while China’s CSI 300 added 0.57% amid improving investor confidence that U.S.–China trade relations could stabilize.

Australia’s Central Bank Eyes Payment System Overhaul

In Australia, the S&P/ASX 200 opened slightly higher, gaining 0.19% in early trading. Reserve Bank of Australia (RBA) Governor Michele Bullock announced plans to review upgrades to the nation’s interbank settlement system starting next year.
The modernization initiative will explore the adoption of new data-exchange technologies, longer operating hours, and broader use of central bank money for settlement transactions, signaling a push toward greater efficiency in Australia’s financial infrastructure.

Wall Street Closes Higher on Tech Strength

Overnight in the United States, the three major stock indexes closed higher, driven by robust corporate earnings, particularly in the technology sector.

• The S&P 500 rose 0.58% to 6,738.44.
• The Dow Jones Industrial Average gained 144.20 points (0.31%) to 46,734.61.
• The Nasdaq Composite surged 0.89% to 22,941.80, bolstered by gains in Nvidia, Broadcom, Amazon, and a 3% jump in Oracle shares.

Investor sentiment improved as strong results from tech giants reinforced optimism about the sector’s resilience amid a complex global economic landscape.

Outlook

The prospect of a Trump–Xi meeting next week has injected fresh optimism into global markets, with investors hopeful for progress on trade, security, and economic cooperation. However, analysts caution that persistent inflation pressures, currency volatility, and geopolitical uncertainty could temper the rally in the coming weeks.

Still, for now, Asia’s markets are celebrating — with South Korea’s record-breaking Kospi leading the charge.